Finning International Inc.

Finning International Inc.

March 01, 2010 09:25 ET

Finning Reports Minimal Impact on South American Operations From Chilean Earthquake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - Finning International Inc. (TSX:FTT) -

The earthquake that struck Chile on Saturday, February 27, 2010, appears to have had minimal impact on Finning's South American operations. The company continues to assess the full impact of the earthquake on its employees and operations.

Employees, branches and customers in the northern part of Chile, including the Antofagasta mining region, continue to operate as usual. Operations at mines closer to the epicenter were temporarily halted, but are expected to resume operations shortly.

Finning South America has approximately 5,000 employees, about 1,000 of who live in the impacted area. Based on preliminary information and assessments received at this point, there have been no reported injuries amongst employees and family members. The company's operations in the impacted region include a corporate head office in Santiago and three branches, Concepcion, Temuco and Puerto Montt. These branches have sustained only minimal damages.

It appears that the heaviest damage has been to Finning's head office in Santiago, however all information systems remain fully operational. For the time being, the company has relocated its employees to alternate Finning offices within Santiago.

"Our foremost priority is the well-being of our people and our thoughts are with them during these difficult times. Finning South America's executive is implementing their contingency plan to mitigate the impact on our operations and ensure that we can continue to fully service our customers. Finning is also committed to playing a proactive role in supporting its employees and providing humanitarian aid during the recovery effort," said Mike Waites, president and CEO of Finning International Inc.

Finning continues to fully evaluate the impact of the earthquake on its South American employees and operations and will provide further updates as more complete information becomes available.

Finning International Inc. (TSX:FTT) is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, and the United Kingdom.

Forward-Looking Disclaimer

This report contains statements about the Company's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, statements with respect to: expectations with respect to the economy and associated impact on the Company's financial results; the estimated annualized cost savings and anticipated restructuring charges related to actions taken by the Company in response to the economic downturn; the potential outcome of the Company's strategic review of Hewden; expected revenue levels and EBIT growth; anticipated effective tax rate; anticipated generation of free cash flow (including projected net capital and rental expenditures), and its expected use; anticipated defined benefit plan contributions; and expected target range of Debt Ratio. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.

Unless otherwise indicated by us, forward-looking statements in this report describe our expectations at March 1, 2010. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from our expectations expressed in or implied by such forward-looking statements and that our business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by our forward-looking statements include: general economic and credit market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, our products and services; our dependence on the continued market acceptance of Caterpillar's products and Caterpillar's timely supply of parts and equipment; our ability to continue to implement our cost reduction initiatives while continuing to maintain customer service; the intensity of competitive activity; our ability to raise the capital we need to implement our business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations outside Canada; with respect to Hewden, not being successful in generating the expected improvements in the underlying business performance or not being able to successfully negotiate and complete a transaction on terms acceptable to the Company or at all. Forward-looking statements are provided in this report for the purpose of giving information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this report are based on a number of assumptions that we believed were reasonable on the day we made the forward-looking statements. Refer in particular to the Market Outlook section of the MD&A. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in the Company's current Annual Information Form (AIF) in Section 4.

We caution readers that the risks described in the AIF are not the only ones that could impact us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, or results of operations.

Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business.

Contact Information

  • Finning International Inc.
    Mauk Breukels
    Director, Investor Relations and Corporate Affairs
    (604) 331-4934